US Dollar Forecast

The Dollar's run higher could be about to reverse warns analyst Karen Jones at Commerzbank in a technical finding that comes just as fundamental reasons to ease back on the U.S. currency start to emerge.

The conditions for a continuation of the Dollar rally remain intact, says Goldman Sachs.

The Pound-to-Dollar exchange rate entered the new week near 2021 lows but could be aided back onto its feet over the coming days. 

The British Pound has lost 1.75% over the course of the past week in what amounts to its worst weekly performance since mid-June, and further losses are likely says one analyst we follow.

The Pound-to-Dollar rate was finding a firmer footing above the recently-tested 1.38 support level on entry into a busy week that could see Sterling’s resilience tested again by the greenback as the Federal Reserve edges closer toward a tapering of its quantitative easing programme.

The Pound-to-Dollar exchange rate has suffered a series of setbacks that have curbed its upward momentum and could see it slipping lower over the coming days, potentially as far as its 200-day average around 1.3757, as a buoyant Dollar keeps downside risks dominant for Sterling.

Analysts at MUFG have raised their forecasts for the British Pound in light of a sustained fall in UK Covid-19 cases which they say will ultimately allow the Bank of England to raise interest rates in 2022.

Fears over global growth slowing and the impact of the Delta variant look overblown, meaning the Dollar's recent safe-haven bid is unlikely to last according to new currency market research.

The Pound-to-Dollar rate must navigate an oncoming Bank of England (BoE) policy decision and an important U.S. jobs report, the headlights of which could potentially have a dampening impact on the British currency though recently improving demand Sterling may mean a renewed attempt on the 1.40 level is just a matter of time.

The Pound-to-Dollar exchange rate was rattled last week and now risks becoming confined to a much reduced trading range over the coming days, with the outcome hinged on the market’s reading of Wednesday’s Federal Reserve  decision and a pending flurry of U.S. economic data.

The Pound-to-Dollar exchange rate enters the new week risking a steady slide toward April lows around 1.37, which could condemn Sterling to a range-trade between there and a burgeoning resistance at 1.39 if expectations of Federal Reserve policy continue to offset for GBP/USD the signs of a shift at the Bank of England.

The Pound-to-Dollar exchange rate enters the new week in the higher end of its likely range and could be volatile over the coming days as the market digests commentary from the Federal Reserve (Fed) while processing economic data from the UK, U.S. and other major economies.

The Dollar is finding support amidst renewed investor anxieties over medium-term global growth according to new research, suggesting those watching this currency will have more than just the U.S. Federal Reserve and inflation expectations to consider.

"Dollar bears, surfing a wave of easy Fed policy, are running out of time. If the US can escape the clutches of the zero-rate bound, it will earn itself a significantly stronger dollar," says Kit Juckes, Macro Strategist at Société Générale.

"Dollar strength creates tremors across markets," says Chris Beauchamp, Chief Market Analyst at IG, touching on the key global currency theme as the turn of month approaches.

 The Dollar’s current bought of weakness has seen it steadily devalue since the start of January.

The US Dollar weakened after the release of Non-Farm Payrolls (NFPs) on Friday Due to data showing a softness in wages.

ING Bank’s latest set of forecasts highlights the continued rise in the Dollar against almost all its major counterparts.

Expectations concerning impending interest rate rises at the US Federal Reserve are forecast to keep the US dollar supported, however this support will ultimately prove temporary.

The dollar could recovery over coming months as overly-pessimistic markets are forced into accepting up to two Federal Reserve interest rate rises in 2016 it is argued.